New Chancellor – Reset of Government’s Plans

Jeremy Hunt has taken over from Kwasi Kwarteng as Chancellor and has ripped up the disastrous mini-Budget!

Among tax measures reversed are cuts to dividend tax rates, by 1.25% from April 2023, VAT-free shopping for tourists, alcohol duty changes and the IR35 tax changes.

The earlier U-turn announcement confirmed that the scrapping of the top rate of 45% tax would be abolished, and the highest rate of tax would remain at 45%.

The Prime Minister more recently announced the planned freeze to corporation tax would also be axed and reverted to the original increase to 25% which had already been legislated to come into effect from 1 April 2023.

The 1.25% cut to National Insurance and the increase to the stamp duty land tax threshold are still reportedly set to stay.

Hunt brought forward the economic statement to placate the markets following fears that spread over the last few days that the government is facing a £72billion black hole in public finances and the reality of spending cuts.

The Pound has already jumped against both the Euro and the US Dollar as a result of the U-turn on the poorly received mini-Budget.

Further announcements are expected and there will hopefully be no further back tracking as the Prime Minister’s role is under the spotlight.